Inventory Control System - Dissertation Example

Effective inventory control permits you to have the correct amount of inventory in the right place at the right time. It ensures that capital is not tied up unnecessarily, and protects production if problems arise with the supply chain.Organizational background:The organization which I will be writing my essay about is my father company.Majeed trading establishment started in 1974 as a sole proprietorship, he started the business by himself as a small shop in Manama dealing in tiles, sanitary ware and other building materials.

In the year 1990 he inducted his brother Mohammed as a partner in the company so that they can grow the business more. In the year 2000 this partnership business has converted into a limited liability Company under the name of Majeed and Mohammed Company.This company is patronized under the leadership of Abdul Majeed Abbas as chairman of the organization and Mohammed Abbas "his brother" is the managing director, the chairman takes care of the administration and personal department activities, and the managing director takes care of the entire business operation, which together makes it as one the leading business house of the country.

A legal form of business organization where two or more people trade together under the partnership act of 1890 (a - z business). It is usual for partnership to have unlimited liability which means each partner legally responsible for the debts of the other partner including their tax liability, they require a high degree of trust. Forming a partnerships allow more capital to be used in the business than in case of a sole trader.The principal trading activities are importing and retailing sanitary ware, ceramic tiles, marble, mixers, Jacuzzis, shower.

In my point of view, I think the best system they have to use is the online system, it will make it easier for the employees to find the information they need and they will be updated in every transaction that the company will make. The problems will be less and it will benefit the company in a way that their problem will reduce and also will increase the sale of the company because there will be a reduction of mistakes from the employees about checking the quantity of the material stock. A system which can be easily shown the now – moving stock will help the company to get rid of the death stock and the organization must work on and tries to sell the materials which are hard to be sold.

In conclusion, to run a success full inventory system data analysis is a very important task.The inventory software should have a powerful technique for analyzing the raw data to achieve the meaning full information. As we know the information is wealth, without information inventory is system is an absolute failure. With the Data analysis techniques only, the company can know the average movement of the stock and forecasting, so that they know how much stock in need to be clear up, and know about all the none, slow and fast moving items.

This inventory valuation report is the important report to close the current fiscal year and open a new financial year. When we want to close the current financial year company should know how much profit has been made during the year, for that company needs how much stock is laying in the warehouse.